Trucking Insurance Terms and Definitions

Auto Liability

Covers bodily injury to others and damage to the property of resulting from automobile accidents caused by the insured. Provides bodily injury and property damage protection to other people/not to insured or insured employees.

Auto Physical Damage

Provides coverage for the loss or damage to autos owned, rented or leased by the insured. Coverage is provided for the insured 's vehicles.

Bodily Injury

Any physical injury to a person

Business Operations

Employees broke a water pipe while installing a dishwasher in an apartment, causing substantial water damage to property in the apartment below.

Completed Operation

A short circuit developed in an electric stove incorrectly installed by employees and caused a fire that damaged the customer's kitchen.

General Liability

Covers business organizations for their liability for bodily injury and property damage arising from accident on premises, business operations in process, products manufactured or sold and complete operations. Provides bodily injury and property damage protection to other people/not insured or insured 's employees.

The following examples of liability claims against an appliance store illustrate the various ways that a business organization can be held liabile for the injuries or property damage suffered by others.

Hired Auto Liability

Hired auto liability coverage will pay for damages to a third party, on behalf of insured's company, if insured causes an accident or an injury to someone while they are driving a leased, hired, rented, or borrowed vehicle for business.

Hired Car Physical Damage

Hired Car Physical Damage insurance provides physical damage coverage for loss to an auto, which the insured leases, rents, borrows, or hires for a period of less than six months. An insured rents a trailer from TIP and has an accident, which causes damage to the rented trailer. Coverage is provided for the damage to the trailer.

IFTA

Interstate Fuel Tax Agreement—To simplify the reporting of fuel use, all interstate carriers keep track of the number of miles for each state that they drive through. They pay fuel tax based on the total miles traveled.

Motor Truck Cargo

Motor Truck Cargo insurance provides coverage for loss or damage to the property that a motor carrier is transporting. A Motor Carrier transporting a load of glass turns a corner to fast and overturns the trailer and the glass breaks. Coverage is provided for the cost of the damaged glass that the insured is transporting.

Non-Owned Liability

Non-Owned Auto coverage protects insured company in the event that insured company is sued as a result of an auto accident that insured, or one of insured employees, has in a personal vehicle while on company business.

For example, an employee runs an errand, or visits a client in his or her personal car. If the employee causes an accident, the injured party is going to look to insured company to pay for damages since the employee was using the car on "company business"

Premises

A customer whose finger was caught in the revolving door incurred medical expenses for treatment in a hospital emergency room.

Products

A customer's face was cut when an electric mixer sold to the customer malfunctioned and shattered the glass mixing bowl

Property Damage

Direct or indirect damage to property

Property Insurance

Covers the financial consequences of accidental losses to property of the insured. The insured could be a person insuring his/her house and the personal property in it (usually called contents) or a business insuring its building, inventory and equipment.

Riggers Liability

Covers property of other on which the insured has agreed to perform "rigging operations " while such property is in the care, custody or control of the insured.

Trailer Interchange Legal Liability

Trailer Interchange Insurance provides coverage for loss or damage to trailers insured doesn't own while in their possession under a written "trailer" or "equipment" interchange agreement in which insured assumes liability for loss to the trailer while in their possession. An insured is hauling a container/trailer for CSX intermodal under a written Trailer Interchange Agreement and has an accident, which causes damage to the container/trailer. Coverage is provided for damage to the container/trailer.

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